D-Day for the cheque

THE future of cheques will be determined today as plans for them to be phased out by 2019 are considered by the Payments Council, a board of banking industry representatives. It is widely expected they will be abolished, despite a campaign to save them.

THE future of cheques will be determined today as plans for them to be phased out by 2019 are considered by the Payments Council, a board of banking industry representatives.

It is widely expected they will be abolished, despite a campaign to save them.

Cheadle's Liberal Democrat MP Mark Hunter has led a cross-party fight to urge bankers not to abolish them, arguing the move would inconvenience millions of people who still use cheques on a daily basis.

His campaign has been backed by the Federation of Small Businesses and consumer group Which?.

But the Knutsford-based Forum of Private Business (FPB) says it is not opposed to abolition in principle.

Mr Hunter said: “It’s scandalous that after the banks have been bailed out with public money they are now planning to reduce their services to the public.

“In the midst of this deep recession, the bankers are dealing a huge blow to hundreds of thousands who rely on cheques for payment – particularly the elderly – and many businesses.”

The FPB said the Payments Council should only approve abolition if it is sure the move will trigger payment innovation by Britain's banks and as long as viable alternatives are in place.

Spokesman Matthew Goodman said: “Lots of people have reservations about the idea of ending cheque payment. It's a familiar and centuries-old system which is still used by countless small businesses for ‘arms length’ payments.

“However, we shouldn't let sentimentality dominate the debate. Cheques are generally the most expensive method for businesses to process and those costs are only set to rise as fewer and fewer people use them.”